Bezos Family's $245 Million Lifeline Launched Amazon to Success
When Jeff Bezos was trying to get Amazon off the ground in 1995, he faced rejection from 40 investors who wouldn't take a chance on his online bookseller. But his parents, Mike and Jacklyn Gise Bezos, were more optimistic, investing $245,573 of their retirement savings in their son's venture.
Bezos had warned them that the odds of success were low, around 30%, which was generous considering the typical startup success rate is closer to 10%. He even joked that his stepfather, Mike, didn't fully understand the concept of Amazon, asking 'What's the internet?'
The investment paid off in a big way. By 1997, Amazon had grown from 10 employees to over 600 and went public at $18 per share, raising $54 million. Bezos became a billionaire by 1998 thanks to his 40% stake in the company.